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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹2,716.66 Cr
verified against source
Revenue YoY
14.2%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Federal Bank delivered a record Q4 FY26 with net profit of ₹1,145 crore (up ~10% QoQ), driven by strong NII growth of 14.2% YoY and record fee income of ₹991 crore (+24% YoY). NIM expanded 2bps QoQ to 3.20%, supported by a 4bps decline in cost of funds to 5.46%. CASA ratio improved 87bps QoQ to 32.94%, with CASA balances crossing ₹1 lakh crore. Asset quality improved to decadal bests: GNPA 1.62%, NNPA 0.37%. ROA reached 1.24% (ex-one-offs), back to pre-rate-cut levels. Management guided for continued NIM expansion, 100 new branches in FY27, and maintained credit cost guidance of 50-60bps. Key risk: escalation of West Asia conflict impacting energy prices and remittance inflows.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects further NIM improvement through deposit repricing, liability mix shift, and asset mix optimization.
- Planned branch expansion of about 100 branches in the next fiscal year, supported by data-driven network strategy.
- Credit cost guidance remains unchanged at 50-60 basis points, though subject to review based on geopolitical clarity.
- Management reiterated the medium-term target of 36% CASA ratio, achievable given recent strong momentum.
Risks flagged
- Geopolitical tensions could disrupt energy markets and remittance inflows, impacting deposit stability and asset quality.
- Intense competition in home loans with rates as low as 7.15% vs deposit costs above that, limiting growth in this segment.
- Management has not yet assessed the full impact of the new ECL guidelines, creating near-term provisioning uncertainty.
- If the West Asia conflict leads to job losses and return of NRIs, remittance inflows and NR deposits could be affected.
Key quotes
- Our Q4 performance reflects a strong operational quarter with outcomes that are consistent with the direction we have articulated throughout the year.
- We have consciously reduced our reliance on high-value deposits which has contributed to a more stable and cost-efficient funding base.
- Both on NIM as well as on ROA, we are back to our pre-rate cut cycle levels. And those were at the peak of the cycle and what we have now are at the bottom of the cycle.
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